Acquisition, Strategic Asset Management and Disposal: Westoe Crown Village

Delta Capital has completed the sale of a multi-let neighbourhood shopping parade in Westoe, South Tyneside. This transaction follows a four-year project, having originally acquired the property for our client in 2022.

The project reflects the full-service approach we take at Delta Capital Property Investment. Following the initial acquisition, we worked to improve the Weighted Average Unexpired Lease Term (WAULT) by negotiating two key lease renewals: a new 15-year term for Tesco Stores Limited and a new 10-year term for The Children’s Society.

Located in a seaside setting near the south-east of South Shields, the property consists of nine purpose-built convenience retail units. At the time of sale, the investment provided steady income security, with 33% of the total revenue anchored by Tesco. The final WAULT stood at 14.36 years to expiry and 11.54 years to break, with 41% of the total income derived from the covenants of Tesco and the Church of England Children’s Society. Additionally, 36% of the income benefits from index-linked reviews, and the asset holds an EPC B rating.

Following a short marketing period, the property was placed under offer at a figure in excess of the asking price. We would like to extend our thanks to joint agent Thomas Heptonstall at FMX and Gillian Bassett at Clarke Mairs Solicitors for their work in bringing this deal to a close.

Daniel Capobasso, Managing Director of Delta Capital, who led the acquisition, the lease renewals, and the final sale, commented:

"This transaction demonstrates the full-service offering at Delta Capital. From the initial purchase through to asset management and the final sale, we have delivered a long-term stable investment with index linked rental growth for the new owner. It is a good result for all involved; both the buyer and seller are pleased with the outcome."

For more information regarding our acquisition and disposal services, please contact Daniel Capobasso directly at 07968 618948 or via email at dc@deltacap.co.uk.